Market Analysis Report (06 Sep 2021)

Cover’s token has fallen $45 since Ted’s announcement, from $269 to $224. Daily trading volume has soared from $3.5 million to $19 million as traders grapple with the news.

Launched about a year ago, Cover created a decentralized market for investors in decentralized finance protocols. By locking up tokens on Cover as collateral, users received tokens that would cover them in case a DeFi protocol they invested in was hacked, rug-pulled or exploited. The value of these tokens depended on the risk of the smart contract.

Cover’s collapse follows an infinite minting hack in December 2020 that left its customers markedly uncovered by its insurance policies, and investors in the COVER token high and dry. 

“It is with conflicted emotions that I announce the end of RULER & COVER Protocol. The decision to do this did not come easy and is a final decision the remaining team made after reviewing the path forward after the core developers suddenly left the projects,”  said DeFi Ted as he laid the troubled DeFi insurance project to rest.

The hacker returned the 4350 ETH they stole and Cover managed to redistribute the funds to its customers, however, the value of the token fell by 96%.

“Compensation will be as of block number 13162680, this will be used as the snapshot to distribute funds to holders from the treasury. Founders including myself will not take part in this.”

Source: https://www.cryptocompare.com/email-updates/daily/2021/sep/06/